Nebius is set to finance a $40 billion expansion of its AI infrastructure through customer prepayments and loans tied to contracts. However, delays at a Microsoft data center have raised concerns about the viability of this financing model, as Nebius relies heavily on timely repayments to manage costs. The company has reported significant revenue growth but has also adjusted its forecasts due to these delays.
The contract with Microsoft, valued at up to $19.4 billion, is critical for Nebius, but only a portion of the expected capacity will be delivered by the end of the year. With ongoing regulatory issues and a lawsuit against the DataOne facility, the situation remains precarious for Nebius as it navigates these challenges while aiming for profitability by 2027.